Which of the Following Best Summarizes the Main Causes of the Great

question 77

Multiple Choice

Which of the following best summarizes the main causes of the Great Recession?

• A) Oil-producing countries deliberately raised the price of petroleum,leading to inflation and a deep recession.
• B) The Federal Reserve raised short-term interest rates very high in an effort to decrease inflation,which also drove the economy into a recession.
• C) The end of overseas war efforts led to a deep decrease in federal spending,which reduced employment and caused a recession.
• D) The stock market collapsed following the end of a bubble in technology stock prices,which caused a decrease in investment spending and a recession.
• E) The collapse of housing prices led to decreased wealth and significant problems in financial markets,as well as a decrease in expected income and a stock market collapse.

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Definitions:

Average Earnings

The mean income of individuals or groups, calculated by dividing total earnings by the number of earners.

Organizational Assets

Resources owned by a company that have value and can contribute to its financial health, including physical, intangible, and human resources.

High Skill

Refers to jobs or workers possessing advanced training, expertise, or education, typically resulting in better job performance and higher pay.

Non-Propertied People

Individuals or groups who do not own property or significant assets, often highlighting differences in social and economic status.